Educational Development Corporation (“EDC”, or the “Company”)
(NASDAQ:EDUC) (http://www.edcpub.com) today reports record net
sales and earnings per share results for the third quarter ended
November 30, 2017.
Randall White, CEO of Educational Development Corporation,
announced that for the fiscal third quarter ended November 30,
2017, the Company reports net revenues of $38,908,000, an increase
of $8,210,400, or 26.7%, when compared to $30,697,600 for the third
quarter of the previous year. Net earnings totaled $2,128,400
for quarter ended November 30, 2017, compared to $1,274, 200 for
the quarter ended November 30, 2016, an increase of 67.0%.
Earnings per share for the quarter were $0.52 compared
to $0.31 for the same quarter in the previous year, up 67.7% on a
fully diluted basis.
Our direct sales division, Usborne Books & More (“UBAM”),
continues to be the largest operating segment of the Company.
Net revenues of this division for the third quarter ending November
30, 2017 were $36,468,400, an increase of 32.0% from $27,622,600
reported in the third quarter ended November 30, 2016. The
average number of active direct sales consultants increased 3,000,
or 11.0%, to 31,100 for the quarter ended November 30, 2017, over
our average active consultant count in the third quarter of last
year.
Our Publishing’s division net revenues for the quarter ended
November 30, 2017 were $2,439,700, a decrease of $635,300, or 20.7%
from the revenues reported in the third quarter of last year
totaling $3,075,000.
The Company’s year to date net revenues in the first three
quarters of the fiscal year totaled $90,020,100, an increase of
$10,645,300, or 13.4%, from $79,374,800 reported in the same period
last year. Net earnings totaled $4,390,600 for nine months
ended November 30, 2017, compared to $2,212,900 for the nine months
ended November 30, 2016, an increase of 98.4%. Year to
date earnings per share increased $0.53, or 98.1%, from $0.54 for
the nine months ended November 30, 2016 to $1.07 for the nine
months ended November 30, 2017, on a fully diluted basis.
Per Mr. White, “As we previously announced, our Company had
record net revenues in our fiscal third quarter. These
revenues were made possible through the technology and operational
improvements that were made this year which increased our daily
shipping volumes. Shipments during the quarter were
able to keep up with incoming orders without creating a large
backlog, which increased revenues and greatly improved customer
satisfaction over prior year levels. This also resulted in
minimal deferred revenue at the end of the quarter.
"We are also reporting record profits for the quarter.
These profits result from increased volumes and operational
improvements that were made during the last two years. We are
very pleased to see trends in reduced handling, packaging and
shipping costs and are excited to see these trends continue in the
future.”
Mr. White continued, “We are also continuing to make additional
investments in cost reducing technologies. During the fiscal
fourth quarter, we will be investing approximately $1,000,000 to
bring additional automation into our packaging and fulfilment
processes, which will further increase our daily shipping capacity
and efficiency.”
EDUCATIONAL DEVELOPMENT
CORPORATION |
CONDENSED STATEMENTS OF EARNINGS
(UNAUDITED) |
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
NET REVENUES |
|
38,908,000 |
|
|
30,697,600 |
|
|
90,020,100 |
|
|
79,374,800 |
|
|
|
|
|
|
EARNINGS BEFORE INCOME
TAXES |
|
3,432,800 |
|
|
2,040,100 |
|
|
7,097,700 |
|
|
3,565,400 |
|
|
|
|
|
|
INCOME TAXES |
|
1,304,400 |
|
|
765,900 |
|
|
2,707,100 |
|
|
1,352,500 |
NET EARNINGS |
$ |
2,128,400 |
|
$ |
1,274,200 |
|
$ |
4,390,600 |
|
$ |
2,212,900 |
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS |
|
|
|
|
|
PER SHARE: |
|
|
|
|
|
Basic |
$ |
0.52 |
|
$ |
0.31 |
|
$ |
1.07 |
|
$ |
0.54 |
Diluted |
$ |
0.52 |
|
$ |
0.31 |
|
$ |
1.07 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE |
$ |
0.00 |
|
$ |
0.09 |
|
$ |
0.00 |
|
$ |
0.27 |
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF |
|
|
|
|
|
COMMON AND
EQUIVALENT SHARES |
|
|
|
|
|
OUTSTANDING: |
|
|
|
|
|
Basic |
|
4,087,268 |
|
|
4,079,916 |
|
|
4,087,686 |
|
|
4,074,355 |
Diluted |
|
4,090,011 |
|
|
4,084,863 |
|
|
4,090,053 |
|
|
4,079,833 |
|
|
|
|
|
|
EDC will host its third quarter fiscal 2018 results Investor
Call including a live Q&A webcast on Tuesday, January 16, 2018,
at 2 PM CT (3 PM ET). Randall White, the Company’s CEO and
President, Craig White, VP of IT, Heather Cobb, VP of UBAM and Dan
O’Keefe, CFO and Secretary, will present the annual results and be
available for questions following the presentation. Phone
lines for participants will be available at (844) 395-9253
(International callers can use (478) 219-0506). The
conference passcode is 5167249.
The weblink to the call is
https://edge.media-server.com/m6/p/iqzodkjw.
The link to the webcast, including replays will be available
following the event at www.edcpub.com/investors.aspx.
About Educational Development Corporation
(EDC)EDC is a publishing company specializing in books for
children. EDC is the exclusive United States distributor of the
UK-based Usborne Books and owns Kane Miller Publishers;
award-winning publishers of international children’s books. EDC’s
current catalog contains over 2,000 titles, with new additions
semi-annually. Both Usborne and Kane Miller products are sold via
5,000 retail outlets and by independent consultants, who hold book
showings in individual homes, through social media, book fairs with
school and public libraries, direct and internet sales.
Contact:Educational Development CorporationRandall White, (918)
622-4522
Cautionary Statement for the Purpose of the “Safe
Harbor” Provision of the Private Securities Litigation Reform Act
of 1995.
The information discussed in this Press Release
includes “forward-looking statements.” These forward-looking
statements are identified by their use of terms and phrases such as
“may,” “expect,” “estimate,” “project,” “plan,” “believe,”
“intend,” “achievable,” “anticipate,” “continue,” “potential,”
“should,” “could,” and similar terms and phrases. Although we
believe that the expectations reflected in these forward-looking
statements are reasonable, they do involve certain assumptions,
risks and uncertainties and we can give no assurance that such
expectations or assumptions will be achieved. Known and
unknown risks, uncertainties and other factors may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, our success in recruiting and retaining new
consultants, our ability to locate and procure desired books, our
ability to ship the volume of orders that are received without
creating backlogs, our ability to obtain adequate financing
for working capital and capital expenditures, economic and
competitive conditions, regulatory changes and other uncertainties,
as well as those factors discussed in our Annual Report on Form
10-K for the year ended February 29, 2016, all of which are
difficult to predict. In light of these risks, uncertainties
and assumptions, the forward-looking events discussed may not
occur. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by the cautionary statements in this paragraph and
elsewhere in our Annual Report on Form 10-K for the year ended
February 29, 2016 and speak only as of the date of this Press
Release. Other than as required under the securities laws, we
do not assume a duty to update these forward-looking statements,
whether as a result of new information, subsequent events or
circumstances, changes in expectations or otherwise.
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